Occupational Code does not Prohibit Private Right of Action Against Real Estate Brokers and Salespersons, but they are not Subject to Claims of Professional Negligence (Malpractice)

In Schwartz v Real Estate One, an unpublished Michigan Court of Appeals opinion, the court held,citing a case from 1879, that under common law, real estate agencies were not subject to claims for malpractice.  However, the court found that the occupational code provisions regulating real estate brokers and salespersons did not prohibit a private right of action for violation of the duties stated in the code.

Additionally, the Plaintiff’s counts for breach of contract, fraud, and negligence stated claims on which relief could be granted.  The court reversed the judgment of the trial court dismissing Plaintiff’s complaint for failure to state a claim and remanded for further relief.


© Steve Sowell 2017